CAIRO - In the 1970s and 1980s, Egyptian nightclubs boomed, jammed with wealthy people and Arab tourists, enjoying the belly-dancing and strong drinks. After the rise of Islamists following the January 25 Revolution, the country's nightlife seems to be in jeopardy. Some nightclubs have already shut down, amid rumours that wealthy Islamists are buying them out, in a bid to turn them into Sharia-compliant businesses. "The business is not as it used to be ten years ago. I'm seriously thinking of retiring," says a stewardess working at a nightclub in the famous el-Haram Street, Giza. The 30-year-old stewardess, who refuses to give her name, believes the whole nightlife business is dying out, and it is time for her to move on. "I used to make LE500 [about $80] per day, when foreign and Arab tourists were the main guests. Now, most of our guests are Egyptians, who give smaller tips," she adds. Currently, there are around 3,500 nightclubs nationwide, according to the Ministry of Tourism. They usually work from midnight until 6am. "Back in the 1970s and 1980s, nightclubs used to hire famous pop singers. I worked with many big-name singers and made a fortune," says Ali Reao, a 50-year-old drummer. Rumour has it that a businessman with connections to the Muslim Brotherhood offered LE19 million for the Hor Moheb Hotel in el-Haram. But the offer has been rejected, with the owner reportedly asking for LE25 million. Many press reports allege that businesspeople related to the Salafist Al-Nour Party and the Muslim Brotherhood are thinking of turning all nightclubs into shopping centres for clothes and domestic appliances. Despite denials from Islamists and officials, four of them were sold last month. Islamists dominated Egypt's first free parliamentary elections after the public revolt that toppled Hosni Mubarak last year. The Freedom and Justice Party, the political arm of the once-banned Muslim Brotherhood, and Al-Nour Party won 47 and 24 per cent of seats respectively in the People's Assembly (Lower House of Parliament). "A belly-dancer makes around LE5,000 per day. In the 1990s, Russians and Bulgarians made their way into the market. With fewer nightclubs, belly-dancers will see hard times," Reao explains. The drummer admits that the nightlife business was already in the doldrums prior to the January 25 Revolution, but now "it's getting worse". There are roughly 4,800 belly-dancers and 20,000 musicians in Egypt, according to unofficial reports. "Personally, I have made enough money. Islamists will find a way to shut down our business for good. Young people in this business will just hit the road. No-one knows what may happen next," he predicts. When it comes to gambling in a Muslim-dominated country, the situation gets more serious as 50 per cent of casino profits go to the State's coffers. Casinos in Egypt make around $2-2.5 billion annually, of which the Ministry of Finance is given at least $1 billion, according to official reports. Revenues from the Suez Canal totalled $5.2 billion in 2011, while Egyptian expatriates' remittances hit $12.6 billion in fiscal year 2010-11, according to the Central Bank of Egypt. Gambling in this Muslim-dominated country is legal under Law No. 1/1973. There are 35 casinos here located in South Sinai, Hurghada and some five-star hotels, working 24 hours a day every day, all year round. An excluded presidency candidate vowed to ban gambling, following in the footsteps of Israel. Islamist Hazem Salah Abu Ismail, whose mother was alleged to be a US national, said it was "disgraceful to tax casinos and nightclubs" to finance the State budget. State revenues from taxes are expected to top LE160 billion in fiscal year 2011-12, up 15 per cent on the previous year, according to the Ministry of Finance. Egypt's fiscal year begins on July 1. Disgraceful or not, the gambling tax is part of Egypt's State budget, which is forecast to incur a deficit of LE144 billion this year. The question that really nags investors and the man in the street is the country's legislative authority and how it will affect the economy, particularly in terms of religiously sensitive issues like interest rates, banking systems and the definition of Sharia-compliant businesses. "No-one can predict anything. Investors are watching and waiting to see how the country's economic situation will turn out," notes Ahmed Saleh, a Cairo-based analyst.
